America’s Richest & Poorest Cities

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We’re worried about China overtaking us. We still shudder at the once mighty, though now humbled, economy of Japan. But through it all, the United States remains the wealthiest country in the world, with a healthy Gross Domestic Product of $14.5 trillion.

That doesn’t mean, though, that there aren’t problems. Just look at the national unemployment rate. It’s far too high. As of the latter portions of 2010, this rate stood at 9.6 percent. That’s left too many people out of work or underemployed. This explains why the economic recovery feels so bad to so many people.

Then there are housing foreclosures. According to online foreclosure company RealtyTrac.com, the United States saw 2.8 million foreclosure filings last year. That’s an all-time record. RealtyTrac’s numbers this year suggest that, though the country won’t set another record, the country will see far too many housing foreclosures again.

And don’t forget about bankruptcy filings, either. The American Bankruptcy Institute reports that the number of consumers filing for Chapter 7 and Chapter 13 bankruptcy protection is reaching levels not seen since the bankruptcy laws were changed in 2005.

So, yes, things are far from economically rosy in the United States.

But here’s an important fact: Things might be far better depending in which city you live.

San Jose Leads the Way

Certain U.S. cities remain gripped by poverty. Others are home to a multitude of millionaires. Consider the cases of San Jose, Calif., and McAllen, Texas.

San Jose ranks as the wealthiest city in the United States. It boasts a median household income of $76,354. Meanwhile, McAllen is the poorest: It has a median household income of just $13,742.

Of course, this doesn’t tell the whole story. It costs far more to live in San Jose than it does in McAllen. Homes are more expensive. Private schools charge higher tuitions. Shopping centers know that they can charge their customers more for everything from winter coats to dog food to shoes.

So even though San Jose ranks as the richest city in the country, that doesn’t mean that the residents there are feeling good about the economy. California has been hit hard by falling housing prices. Much of California has this problem. This has eliminated much of the wealth that many California homeowners once enjoyed. Do you feel sorry for the Californians or do you feel like anyone in a minimum of a half-million dollar house can fend for themselves?

San Jose has a far higher median household income than the rest of the country, but it doesn’t mean that the residents there aren’t waiting just as anxiously for the national economy’s recovery to finally show some stronger signs of life.

Millionaire Central

Even millionaires are struggling in today’s dismal economy. Really. They’re losing money on their investments and their real estate holdings. True, they have a lot more money to lose. But losses are losses, right?

So where are the poor little millionaires? If you’d like the magic of millionaires to rub off on you, consider moving to New York City. The city, not surprisingly considering its huge population, is home to the most millionaires in the country, more than 667,000 of them. Los Angeles, too, has more than its share of millionaires: more than 235,000. In the Midwest, Chicago leads the way, with more than 198,000 millionaires calling the Windy City home.

Unfortunately, chasing wealth across the United States doesn’t mean that you, too, will become rich. You can live among the millionaires of New York City and Los Angeles and never learn a bit about making big money. Or you can set up shop in McAllen, Texas, and make a small fortune.

It’s your brains that matter. And your drive.

Location, location, location? That only matters for real estate. So where will you go next? (Check the stats) and see what you can expect to earn there!